Got debt? Of course you do. Do you have a budget or plan on how to eliminate your debt? Probably not. What no budget? Okay the fact is the majority of people do not know how to get out of debt with a budget or even have a plan. Truthfully I think making a family or individual budget has been lost in the fast pace, ever changing technology world that has encompassed our lives in the last fifteen years. and the fact that people are just living day to day.
Budgeting bills, budgeting debt has become a mountain of a challenge when other factors are thrown in such as lost of income, sky rocketing cost of living, unexpected expenses, buying into the newest technology, and of course keeping… up with the Jones.
Have you stopped and figured out how much debt you have? What about the outrageous fees, higher interest rates and the extra costs that are attached? I think in fact if you stopped and worked out the numbers, depending on your personality, you would either sit down and cry, or get mad enough to do something positive about it and change your outcome.
American Consumers are in debt to the hefty amount of approximately $12 trillion dollars. On average a US household that is in debt on credit cards, carries approx $15,000.00.
Of course the numbers are forever changing, and the disgusting, never ending cycle of debt people are dealing with include other factors such things as:
- Student loans – $1.20 trillion
- Credit Card – $900 billion
- Mortgages – $9 trillion
The cycle is suppose to go something like this, the higher the consumer spending is, helps turn the economy around. More spending leads to steady employment, job growth and higher income, which in turn leads to more spending.
But this “so called cycle” doesn’t always go as planned and borrowing more, paying on credit, going deeper into debt just to make ends meet seems to be part of life.
Let me open your eyes to the truth of consumer debt:
- People do not take full responsibility for debt
- People get into vicious cycles with high interest rates and cannot get out
- You will absolutely spend more if you use credit cards
- Most families do not make payments on time
- Most people rob Peter to pay Paul, and also hide actual amounts from spouses/family members
- Majority of households do not follow a regular monthly budget
- People run to cash advance places, for Christmas money, for weekend adventures, etc
- People without planned budgets have no idea what they are truly spending their money
- Bankruptcy (I won’t even go there right now)
- Yes, you are in debt, with no working budget….you certainly are not alone! Learn to take care of your situation.
Are you aware that a budget you commit to is one of the most important tools towards building a solid financial future?
A good idea is to keep track of every penny you spend for a whole month. Write it down on paper, log it your phone, I have even wrote notes on my hand until I got home to record my numbers. And I do mean every penny, people do not take into consideration that everything adds up, such as that one donut in the morning, going to the vending machine on a daily basis, tolls, tip jars, running into the store to buy one thing (and end up spending $50 like I do sometimes).
For EVERYTHING you buy, send yourself a test message showing the amount spent, you might get tired of receiving your own messages!
Our society certainly lives in the moment. with little to no usage of any type of family budgeting. I believe that due to credit cards, payday places, and the media pushing items on us, we as a society do not know how to save, to purchase something at a later date, or to save for the future. Shall we just call it instant gratification? And think about it, we are programmed this way, to have it all now and pay the (outrageous) price later.
Having a budget and sticking with it is a priority to achieving your own financial security.
It will help you to:
- Make a plan to pay down debt
- Increase your income flow
- Eliminate debt faster
- Get organized with bills
- Be more efficient in spending
- Pay bills on time -this will cut down on late fees
- Build up an emergency fund (only use it for an emergency)
- Start a retirement account
- Build a financial base for the future
Okay so I am sending a message to you right now…Learn to simplify your life! Learn how to budget, to understand, control and improve your own finances. You can get out of debt with a budget when using a proven simple method that absolutely shows you why you need a budget, how to organize your own budget and get control of your finances. Working with a budget, paying off your debt, saving more money, and breaking the paycheck to paycheck cycle should be high priority. Just remember, the hardest part is get started, so do it right now. Did you get that text message?